On Wednesday, Micron Technology announced its robust first-quarter earnings and a jump in share price as artificial intelligence (AI) supported profits.
Its stock price rose by 1.88% to $95.77 apiece on September 25’s Asian afternoon session. Moreover, it is set to increase by 14.76% to $109.91 per share in the after-hours trading.
The computer memory producer’s earnings per share (EPS) spiked to $1.18, beating the analysts’ expectations of $1.11 and the previous $0.62 figures.
Likewise, the revenue of Micron climbed to $7.75 billion, surpassing the $7.65 billion estimates, and the $6.81 billion from the past quarter.
For Q1, the firm anticipates an adjusted profit of $1.74 a share, more or less than $0.80 compared to experts’ $1.65 guidance.
Wrapping up its Q4, Micron posted its full fiscal 2024 earnings, noting the total generated revenue of $25.11 billion, up from $15.54 billion last year. In addition, its net income’s accumulated amount equated to $1.47 billion for the year.
According to CEO Sanjay Mehrotra, the tech firm’s financial data was supported by the AI boom, highlighting its gains in the quarter. He added that they are entering fiscal 2025 with the most ideal competitive positioning in their history.
Recently, Micron has become prominent as a significant supplier of high-bandwidth memory or higher-capacity DRAM for AI servers.
AI Booming Demand Supports Micron Profits
Micron announced its Q1 results ahead of the Wall Street forecasts as its Q4 growth. The results reached its highest in over a decade, backed by the AI race that spiked demand for their memory chips.
The Idaho-based company is one of the only three suppliers of high-bandwidth memory (HBM) chips, alongside SK Hynix and Samsung.
Moreover, Mehrotra mentioned that data center customers’ demand maintains solidity while inventory levels remain healthy.
Furthermore, Micron gained support from the AI boom during the memory chip inventory glut in personal computer and smartphone markets.